Light olefins
Overview
The global light olefins market is made up of ethylene and propylene monomers. These product markets can be affected by a great many factors.
Ethylene is the most widely used commodity chemical and is produced globally in all major regions. It is converted into many products used in daily life like plastic packaging, durable goods, hygiene products and other consumer items. The ethylene market is driven primarily by regions of low production cost and regions of high demand growth. Polyethylene, ethylene’s largest derivative, represents about 65pc of global ethylene demand. Anyone involved in the ethylene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and potential swings in pricing.
Propylene is the second most widely used commodity chemical and is produced globally in all major regions. Propylene is a volatile commodity because of its predominantly co-product nature and unpredictable supply, but recently the industry has been trending to more on-purpose production. It is converted into many products used in daily life like plastic packaging, durable goods, automotive products, and woven fabrics. Polypropylene, propylene ’s largest derivative, represents about 70pc of global propylene demand. Anyone involved in the propylene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and potential swings in pricing.
Our light olefins experts will help you determine what trends to track and how to stay competitive in today’s ever-changing global market.
Latest light olefins news
Browse the latest market moving news on the global light olefins industry.
India imposes new s-PVC import duty
India imposes new s-PVC import duty
Singapore, 27 July (Argus) — India will impose duties on suspension polyvinyl chloride (s-PVC) imports with cost, insurance, and freight (cif) value of less than or equal to $0.766/kg, the ministry of commerce and industry said in a notification on 24 July. India's Directorate General of Foreign Trade (DGFT) said imports with a value at or less than $0.766/kg ($766/t) will be classified as "restricted" for a period of six months from 24 July onwards. The notification also underlines that this restriction "will not be applicable for imports by 100pc Export Oriented Units (EOUs), units in the SEZ and imports under the Advance Authorisation Scheme, subject to the condition that the imported inputs are not sold into the Domestic Tariff Area (DTA)". Market participants surveyed underlined that the notification has not had a noticeable impact on prices for Indian s-PVC imports, with other factors such as high freight rates and recent offer announcements driving the market. The new policy is expected to provide a price floor for the next six months in the Indian markets, but demand may be weak due to the monsoon season which will run until September, a producer in India said. Sellers outside of India are currently reassessing their strategies, as it is still unclear whether the policy will still be in effect after the six-month period. "We are in the middle of waiting to see what happens, although the impact may not be too severe due to recent [tensions in the Middle East]," an exporter based in China said. India imported a total of 3.153mn t of PVC in 2025, according to data from Global Trade Tracker (GTT), while imports in January-May this year reached just above 1.415mn t. Of these imports, China remains the greatest contributor and made up over 47pc of total imports in 2025 and over 53pc of total imports so far in 2026. While India remains heavily reliant on imported PVC supplies, the import duty is viewed as a way to control long-term import supply into India ahead of upcoming production capacities in the country from 2027 onwards. By Julia Tan and Michael Vitiello Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
EU publishes vehicle recycled content rules
EU publishes vehicle recycled content rules
Brussels, 24 July (Argus) — The EU today published the regulation setting recycling requirements for vehicles and end-of-life vehicle management, which includes the obligation for at least 15pc of recycled plastic in new vehicles from 1 September 2032. This increases from 1 September 2036 to 25pc of plastic recycled by weight from post-consumer waste. The regulation excludes from the weight calculation elastomers from tyres and thermosets, apart from cushioning polyurethane foams. A further provision requires at least 20pc of the target to come from plastics recycled from end-of-life vehicles (ELVs) or from parts removed from used vehicles. The European Parliament approved the rules in June. German centre-right EPP lawmaker Jens Gieseke, who helped draft the measure, said it opens the way for more recycled steel, aluminium and other critical raw materials to be used in new vehicles. By 30 September 2028, the European Commission is obliged to adopt a delegated act establishing a minimum share of steel recycled, and where relevant ferrous scrap, from post-consumer steel waste. The steel target should apply no later than 14 August 2033. Similarly, the commission has to set a minimum target share of recycled aluminium and alloys, also applicable by that date. More broadly, the regulation sets a 1 September 2032 target for EU type-approved vehicles to be constructed so they are "reusable or recyclable" to a minimum of 85pc by mass. The commission has to assess by 31 December 2033 the feasibility of targets to increase the use of biobased feedstock in vehicles' plastics. The law enters into force in 20 days, with provisions generally applying from 1 September 2028. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Brazil's chemical industry decries new US tariffs
Brazil's chemical industry decries new US tariffs
Sao Paulo, 22 July (Argus) — Brazil's chemical industry association Abiquim said the newly confirmed 25pc US tariff on Brazilian exports is unjustified, arguing the measure targets a sector in which the US already holds a trade surplus and could increase costs for US manufacturers. The US exported about $11.5bn of chemicals to Brazil in 2025 and imported around $2.1bn, leaving a trade surplus of more than $9bn in favor of the US, Abiquim said. While tariff exemptions cover 493 of the 1,177 chemical HS6 codes and 64-71pc of export value, 684 codes remain subject to the additional 25pc duty. The association estimates the measure could add about $66mn in costs by the end of 2026, or $133mn/yr. Coatings, synthetic textile fibers, soaps and detergents are expected to be among the most affected segments. Abiquim called for the Brazilian government to draw up support measures for companies and to keep negotiating with Washington to expand the list of exempted products. By Isabela Mendes Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US housing bill to become law without Trump
US housing bill to become law without Trump
Houston, 10 July (Argus) — A bill aimed at improving US housing affordability and approved by Congress is set to become law today without the signature of President Donald Trump, a win for the homebuilding sector. The ROAD to Housing Act contains over 50 provisions designed to improve housing affordability, including streamlining federal permitting processes, expanding access to government lending programs, and creates a pilot home repair grant program to shore up an aging housing stock. The bill has been lauded by the homebuilding sector, which in recent years has struggled with poor consumer demand and elevated borrowing rates that have stymied both mortgage applicants and homebuilders seeking financing for projects. The "landmark legislation would expand housing opportunities for buyers and renters, strengthen homeownership, and help tackle the affordability challenges facing communities nationwide", the National Association of Home Builders said last month. The bill was approved by the US House of Representatives and Senate with broad bipartisan support, but its status has been in limbo for over a week after Trump cancelled a planned signing ceremony scheduled for 24 June in an attempt to force passage of an unrelated bill that would implement voting restrictions. "I will not sign the Housing Bill, which has been fully approved by Congress and sent to the White House, in PROTEST over the fact that the United States Senate is not capable of passing THE SAVE AMERICA ACT," Trump said Friday on social media, referring to the voting bill. Nevertheless, the housing legislation is set to become law Friday. Under the Constitution, bills presented to the president become law in 10 days, excluding Sundays, if no action is taken. The bill officially reached Trump's desk on 29 June. Trump is highly unlikely to veto the bill, a move that Congress likely could override given the legislation's broad support. By Gordon Pollock Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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